When the consumer spends a small portion of his income on a good, demand will be
A) elastic.
B) unit-elastic.
C) inelastic.
D) elastic, unit-elastic or inelastic depending upon supply.
C
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An increase in the real interest rate outside of the United States will cause the dollar to ________ relative to other currencies and ________ net exports and real GDP
A) appreciate; increase B) appreciate; reduce C) depreciate; increase D) depreciate; reduce
Private initiative and financing were most important in
(a) the canal system of transportation. (b) the steamboat system. (c) the railroad system. (d) none of the transportation systems.
Which of the following is not a reason used to explain the slowdown in productivity in the United States?
A. The lack of savings in the 1980s and early 1990s B. High energy prices in the 1970s C. Competition from China and Japan D. Inadequate workforce skills
An expansionary fiscal policy is likely to result in the Treasury
A) selling more bonds, the prices of bonds falling, and interest rates falling. B) buying more bonds, the prices of bonds rising, and interest rates falling. C) selling more bonds, the prices of bonds rising, and interest rates rising. D) selling more bonds, the prices of bonds falling, and interest rates rising.